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Featured Snippet Summary: Ben Pasternak, founder of the Believe token launchpad, is facing a class action lawsuit filed March 23, 2026, in the Southern District of New York. Investors allege he made false statements about insider ownership, promised buybacks that never happened, and orchestrated a forced token migration that diluted holdings by 33% — wiping out hundreds of millions of dollars in investor value.
Who Is Ben Pasternak?
Ben Pasternak is an Australian-born tech entrepreneur who gained early fame as a teenage app developer before pivoting into the crypto space. In January 2025, he launched a Solana-based token launchpad — initially branded Clout, later renamed Believe — designed to lower the barrier to entry for creating and trading digital tokens. The platform quickly gained traction, processing over $6 billion in cumulative trading volume and generating an estimated $54 million in platform fees. Behind the hype, however, investors allege a different story was unfolding.
The Ben Pasternak Lawsuit: Core Allegations
On March 23, 2026, law firm Burwick Law filed a class action lawsuit against Pasternak, B24 Inc., and the Believe Foundation in the U.S. District Court for the Southern District of New York. The plaintiffs — Joshua Lee (California) and Pierre Montmeas (France) — represent all investors who purchased, acquired, or held $PASTERNAK, $LAUNCHCOIN, or $BELIEVE tokens from January 2025 onward.
Allegation 1: False Claims of Zero Insider Ownership
On January 24, 2025, Pasternak launched the $PASTERNAK token and publicly announced on X that he had "0 ownership in the token." The complaint alleges this statement was false and designed to build retail confidence by suggesting no insiders held a financial stake in the token's price movements — a classic rug-pull setup tactic the lawsuit argues deliberately misled the market.
Allegation 2: The "Flywheel" Buyback That Never Came
From May through October 2025, as the $LAUNCHCOIN price declined over 99%, Pasternak made at least 12 separate public statements about a "flywheel" buyback mechanism — a system supposedly designed to channel platform fees back into the open market to purchase and support token prices. According to the lawsuit, these buybacks never materialized. Investors continued holding based on these promises while the token's value evaporated.
Allegation 3: The Forced Migration & Hidden Dilution
On October 15, 2025, Pasternak announced a forced migration from $LAUNCHCOIN to a new token, $BELIEVE. The complaint characterizes this as an undisclosed and harmful dilution event:
- Total token supply increased from 1 billion to 1,333,333,284 — a 33.3% expansion, which Pasternak publicly framed as only a "25% increase"
- Approximately 25% of the newly minted tokens were directed to insiders
- Anyone who missed the two-week migration window had their holdings permanently destroyed
- The announcement triggered an immediate 30% price drop
By the time of filing, $BELIEVE had lost 99% of its value from its all-time high. Total alleged investor losses run into the hundreds of millions of dollars.
Why This Case Matters for Crypto Investors
The Ben Pasternak lawsuit is one of several high-profile enforcement actions reshaping how regulators and courts view token launches and launchpad operators. Key legal questions the case raises:
- Does a token launchpad operator face liability for tokens launched on their platform?
- Can misleading social media posts constitute securities fraud?
- Is a forced token migration with supply dilution a form of insider theft?
These are not abstract questions. If courts rule against Pasternak, the precedent could affect how all Solana-based launchpads — and their founders — are held accountable going forward.
How to Protect Yourself in a High-Risk Token Environment
The Believe saga is a textbook case of what to watch for before entering any token position:
- Verify insider allocation disclosures — on-chain data doesn't lie, wallets do
- Treat "buyback" promises as unconfirmed until executed — check transaction history
- Read migration terms carefully — forced migrations with tight windows and supply expansions are red flags
- Diversify across established, regulated products — spot trading and futures on regulated platforms offer far more transparency than anonymous token launches
At Phemex, only thoroughly vetted assets are listed on the spot and derivatives markets. Phemex's transparent fee structure, on-chain proof of reserves, and regulated trading environment give you the tools to trade with confidence — not blind faith in a founder's tweet.
Current Status of the Lawsuit
As of April 2026, the class action is active and ongoing with no major decisions issued yet. The case remains in its early stages in the Southern District of New York. Both Pasternak and the Believe Foundation have not yet publicly addressed the full scope of the allegations in court filings.
FAQ
Q: What tokens are covered in the Ben Pasternak lawsuit? The lawsuit covers $PASTERNAK, $LAUNCHCOIN, and $BELIEVE — all tokens associated with Pasternak's Believe platform launched between January 2025 and October 2025.
Q: Who filed the Ben Pasternak class action? Burwick Law filed the class action on March 23, 2026, on behalf of lead plaintiffs Joshua Lee and Pierre Montmeas, representing all qualifying investors.
Q: Can I join the Ben Pasternak lawsuit? If you purchased, acquired, or held $PASTERNAK, $LAUNCHCOIN, or $BELIEVE tokens from January 2025 onward and suffered losses, you may qualify as a class member. Contact Burwick Law directly for eligibility information.
This article is for informational purposes only and does not constitute legal or financial advice. Always conduct your own due diligence before investing in any digital asset.
